Which of the following features of bonds can be either an advantage of bond financing or a disadvantage, depending on the economic conditions of the general area?
a. Bond interest rates are fixed.
b. Bonds eventually mature and must be paid off, whereas stock does not.
c. Bond interest is paid out of pretax earnings and therefore is not taxed.
d. Bonds usually cost the issuing firm less than common stock.
If the Net Present Value (NPV) is zero or greater, the manager can make the investment.
Indicate whether the statement is true or false
For employees to view a casino property as a good workplace, managers need to:
a. work together to promote a cooperative society within the organization
b. provide more control over employee performance
c. understand that employees have no need to be included in the decision-making process.
d. realize employees cannot be expected to complete assigned duties and give input.
e. learn that workers bring with them experience that needs to be redirected.
In 2006, the largest travel agencies received a majority of their revenue from commissions from sales of airline tickets.
Indicate whether the statement is true or false
Why is the hospitality industry a significant and distinctive economic force?
What will be an ideal response?
Explain the importance of controlling fixed labor costs.
What will be an ideal response?
The Aquatics Corporation issues only common stock. It has total stockholders' equity of 200,000 and 50,000 outstanding shares. The par value of each share is 3 . The book value per share of stock is:
a. 4.
b. 150,000.
c. 16.
d. 3.
Food and beverage managers and assistant managers have duties and responsibilities include all of the following except:
a. ensuring that health policies are being followed by each departmental employee
b. creating menus
c. contracting with fast food outlets
d. arranging special events
e. considering and maintaining the department budget
What attributes make the service industry different from manufacturing?
What will be an ideal response?
Most states have special regulations governing entry into the travel agent business.
Indicate whether the statement is true or false
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